# Public pay cap reforms in Mexico and Chile > Live situation record from CLSTR: https://clstr.news/situations/public-pay-cap-reforms-in-mexico-and-chile > Updated: 2026-08-03T20:48:27.000Z. Sources: 13. Developments: 2. In late July 2026, Mexico’s federal government acknowledged a legal conflict in its constitutional reform that sought to halve public pensions. The conflict arose because the reform simultaneously tied the pension ceiling to the president’s salary while also imposing a 50 % reduction, which proved incompatible. Legal counsel ordered the pension limit to follow the full presidential salary, effectively restoring the higher ceiling and nullifying the intended cut. A week later, Mexico’s governor confirmed that no public pension may exceed the president’s salary, cementing the “golden pensions” cap and reporting savings of about 5 billion pesos. At the same time, Chile’s legislature advanced a separate “Super Sueldos” bill aimed at capping the highest salaries of public officials without reducing existing earnings, indicating a regional trend toward limiting public‑sector compensation. Together, the snapshots show Mexico moving from a contested pension‑cut proposal to an enforced cap tied to the president’s salary, while Chile initiates its own salary‑cap legislation. ## Timeline ### 2026-08-03: Chile and Mexico move to cap public officials' pay Chile pushes a “Super Sueldos” bill to cap top public salaries, while Mexico bans pensions higher than the president’s salary, ending “golden pensions.” 5 sources. https://clstr.news/cluster/chile-and-mexico-move-to-cap-public-officials-pay ### 2026-07-27: Mexico government drops 50% pension cap, limits public pensions to president's salary Mexico’s federal government nullified the 50 % pension cap for public servants, setting the limit at President Claudia Sheinbaum’s full salary (134,290 pesos) after legal counsel flagged a constitutional clash. 8 sources. https://clstr.news/cluster/mexico-government-drops-50-pension-cap-limits-public-pensions-to-presidents-salary --- Cite as: Public pay cap reforms in Mexico and Chile. CLSTR, https://clstr.news/situations/public-pay-cap-reforms-in-mexico-and-chile